Upbound Group (NASDAQ:UPBD) Stock: Insider Fahmi Karam Purchases 4,407 Shares

Key Points

• CEO Fahmi Karam purchased 4,407 shares at an average price of $22.71, spending about $100,083 and increasing his direct stake by 1.73% to 258,912 shares.
• Upbound beat quarterly estimates, reporting EPS of $1.01 versus $0.91 expected and revenue of $1.15 billion versus $1.12 billion expected; revenue was nevertheless down 1.3% year over year.
• The company’s annualized dividend is $1.56 per share, a reported yield of 6.3%. Analysts’ consensus rating is Hold, with a $27 average price target.

Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) CEO Fahmi Karam bought 4,407 shares of the stock in a transaction dated Tuesday, November 3rd. The stock was bought at an average cost of $22.71 per share, for a total transaction of $100,082.97. Following the acquisition, the chief executive officer directly owned 258,912 shares of the company's stock, valued at approximately $5,879,891.52. This represents a 1.73% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Upbound Group Price Performance

Shares of NASDAQ:UPBD traded up $0.76 during midday trading on Thursday, reaching $24.90. 1,571,136 shares of the company were exchanged, compared to its average volume of 947,453. The company has a current ratio of 3.17, a quick ratio of 0.97 and a debt-to-equity ratio of 1.80. The business's fifty day moving average is $17.48 and its two-hundred day moving average is $18.93. Upbound Group, Inc. has a one year low of $14.98 and a one year high of $25.29. The stock has a market cap of $1.45 billion, a PE ratio of 13.11 and a beta of 1.80.

Upbound Group (NASDAQ:UPBD - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.91 by $0.10. The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.12 billion. Upbound Group had a net margin of 2.36% and a return on equity of 33.81%. Upbound Group's revenue for the quarter was down 1.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.00 EPS. As a group, analysts predict that Upbound Group, Inc. will post 4.22 earnings per share for the current year.

Upbound Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 27th. Investors of record on Tuesday, October 6th were issued a $0.39 dividend. The ex-dividend date of this dividend was Tuesday, October 6th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 6.3%. Upbound Group's dividend payout ratio (DPR) is presently 82.11%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Wall Street Zen cut shares of Upbound Group from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Zacks Research raised shares of Upbound Group from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. TD Cowen cut their price objective on Upbound Group from $27.00 to $26.00 and set a "buy" rating for the company in a research note on Friday, October 30th. Weiss Ratings cut shares of Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, September 21st. Finally, BTIG Research downgraded Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 price objective on the stock. in a research report on Friday, July 31st. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $27.00.

Institutional Investors Weigh In On Upbound Group

Several large investors have recently added to or reduced their stakes in UPBD. Hohimer Wealth Management LLC purchased a new stake in shares of Upbound Group during the 3rd quarter worth $158,000. One Way Holdings LLC purchased a new position in Upbound Group in the 3rd quarter valued at $5,610,000. Vise Technologies Inc. purchased a new stake in shares of Upbound Group in the third quarter valued at about $172,000. Summit Global Investments increased its position in Upbound Group by 5.3% during the 3rd quarter. Summit Global Investments now owns 38,648 shares of the company's stock worth $607,000 after purchasing an additional 1,948 shares during the period. Finally, State of Wyoming acquired a new position in Upbound Group during the third quarter worth $231,000. 90.30% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Upbound Group

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Six directors and executives bought a combined approximately $1.24 million of UPBD stock on November 2–3, at prices between $22.61 and $23.00. Several increased their holdings meaningfully, a potential signal of confidence in the company, although insider buying does not guarantee future gains. SEC filing
• Positive Sentiment: In its latest reported quarter, Upbound earned $1.01 per share, topping the $0.91 analyst consensus, and generated $1.15 billion in revenue, ahead of estimates. Company results and stock information
• Neutral Sentiment: A recent article identified UPBD as a potential long-term growth stock, but it offers a broad investment perspective rather than a new company-specific catalyst. Long-term growth article
• Negative Sentiment: Revenue in the latest quarter was down 1.3% year over year, tempering the earnings beat and indicating that sales growth remains a concern.

About Upbound Group

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.

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